131st MAINE LEGISLATURE
		LD 639		LR 1748(02)
	An Act to Protect Vehicle Buyers by Limiting Vehicle Document Preparation Fees
	Fiscal Note for Bill as Amended by Committee Amendment " "
	Committee: Transportation
	Fiscal Note Required: Yes
Fiscal Note
			FY 2023-24	FY 2024-25	Projections  FY 2025-26	Projections  FY 2026-27
Net Cost (Savings)
	General Fund		$168,150	$340,100	$340,100	$338,200
Revenue
	General Fund		($168,150)	($340,100)	($340,100)	($338,200)
	Other Special Revenue Funds		($8,850)	($17,900)	($17,900)	($17,800)
Fiscal Detail and Notes
	This bill prohibits a dealer selling a new or used motor vehicle from charging a document preparation fee. The document fee is considered part of the sales price of motor vehicles and is subject to the sales tax. Assuming a January 1, 2024 effective date, prohibiting the document preparation fee will reduce General Fund revenue by $168,150 in fiscal year 2023-24 and $340,100 in fiscal year 2024-25. It will also reduce Local Government Fund revenue by $8,850 in fiscal year 2023-24 and $17,900 in fiscal year 2024-25. These estimates assume that motor vehicle dealers increase other elements of the price when the documentation fee is prohibited, such that the total taxable sales price is reduced by 10% of the documentation fee amount.